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Is cas-4 mandatory ?

pdgoenka (Dy Mgr) (123 Points)

11 March 2017

Two different manufacturing unit (Pvt Ltd ) with different excise registration but same set of directors. Both these companies buy each other's semi finished goods and finished goods for onward sale. For determination of value, is it mandatory by excise rules to get CAS-4 certificate from ICWAI certified accountant for every financial year ? In case certification is not done, then what are the implications ?

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CMA Navneet Kr Jain (cost consulting) (5151 Points)
Replied 11 March 2017

The companies being related persons are required to comply with Rule 9 of Central Excise Valuation Raules. Attention is drawn to the recent instructions on the periodicity of CAS-4. While preparing the CAS-4, the ampping iwth other data is of much importance Periodicity of CAS 4 certificates-reg. [CBEC Instruction F. N0. 206/01/2017-CX 6 dated 16th of February, 2017] Attention is invited to Board’s Circular No. 692/0812003-CX dated 13th February, 2003 by which it was clarified that cost of production of captively consumed goods shall be done strictly in accordance with CAS-4. 2.Instances have been highlighted during C & AG audit that some assessees are not preparing CAS-4 certificates even after substantial time lapse from ending of financial year and filing of Tax Audit reports and therefore these assessees could not calculate the differential duty. 3.In this regard, it is directed that assessees should be requested that CAS 4 certificate of the financial year ending on 31 st March shall be issued by 31 st December of the next financial year. For example, for the Financial Year 2016-17, CAS-4 certificate should be issued by 31.12.2017. The assessing officer shall thereafter finalize the provisional assessment expeditiously. Jurisdictional Commissioners shall suitably issue the trade facility in this regard.